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Uber has defeated Bill de Blasio’s plan to rein them in

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Re: Uber has defeated Bill de Blasio’s plan to rein them in

#111
Most of my exposure to Uber has been negative articles about them. I've used them a handful of times, but not for a couple of years, until just this week.

I used them to get to and from the airport for a trip this week, and it was pretty interesting to compare with what I've been reading.

First, of course, the experience as a user was great. This is no surprise, but it sure does cement my desire to use them over any other service. I wanted to avoid taxis at all costs. I was ready to drive to the airport twice each way to handle all 8 people who were going, and pay for parking, rather than deal with that. I've done it before and wow, it just sucks. You call and get a surly dispatcher, you have no idea where your car is until it arrives, it might just not show up, credit cards are a joke, you have to figure out what to tip, etc. Uber was great. Hail in the app, see within seconds exactly where your car is and who's driving it, track them all the way, get in, ride, then get out on the other end and go, without even needing to explicitly pay. It just works! Even getting two different cars at 5AM in the suburbs was no problem. No cars were available at first, but within a few minutes they appeared.

I'll note that it's not just taxis who are problematic. I also checked into Super Shuttle, because heck, there's so many of us that we should be able to get a whole van at a good price. Checking on their web site, I thought that's how it would be. They wanted $28 plus $10/person, which worked out to quite a bit cheaper than four Uber rides (two each way). And we'd all go together, cool! Of course, it turns out that this is the price for each way, so the actual price would be double. They are pretty careful not to make this clear until very late in their reservation process. To be fair, all the info is there if you pay very close attention, but they make it extremely easy to assume that the quoted price is the whole thing. Compare with Uber, which is happy to give me a pretty precise quote, and matched it (near the low end!) all four times.

OK, we know all this. It's a great service (unless you get a bad driver who attacks you or something) but it's built on the backs of the poor oppressed drivers. Except both drivers I talked to were ecstatic about Uber and loved doing what they do. One was relatively new on the job, having been an assistant manager at a pizza place until a few months ago. He started out doing Uber part time, then graduated to full time once it became apparent that it was the better choice. The other one has been doing it for about two years. He bought a brand new Toyota just to drive for UberX, and he's put over 60,000 miles on it since then. He loves the flexibility (apparently he's somewhat "on call" to help family members out doing various things, and when he needs to help them he just signs out of Uber, goes off and does whatever tasks this involves, and signs back in) and the money is pretty good. He usually hangs around downtown DC on weekends and makes good money accumulating lots of short trips, but hangs out doing occasional airport runs on other days to earn a bit more.

So they're good with customers, they seem to be great with drivers, and all I have left is a vague sense of unease at how they approach regulations, by basically barging in and ignoring them. Except they're totally on the up-and-up in Virginia now, having reached an accommodation with the relevant authorities to be completely above-board.

After all the stuff I've read about them over the years, I felt a little guilty using Uber for this trip, but practicality won out. The guilty feeling didn't last.

Edit: I forgot to mention, the second guy, with the new Toyota, previously drove a cab. It was awful, and says he tries to convince his cabbie friends to switch to Uber at every opportunity. They charged him $150/day to drive for them no matter what. No fares? Fuck you, pay me. He's extremely happy that Uber came along to give him a much better way to make money.

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#112

The thing about Uber I don’t understand is how they are going to defend their monopoly once they acquire it. Assuming they eventually win all the legal battles and drive all other taxi and taxi-like services out of business then how are they going to stop anyone else from entering their market? Each transport market is effectively isolated (you don’t hail a driver from SF to get around NYC). This means any new entran…

It is rare to see, of not impossible, a real monopoly in a free market. Uber has to compete to win customers, if they artificially raise their prices to where people will not pay, people will choose a different form of transportation.

I think Ubers monopoly will be at least as strong as Ebay's in online auctions. There's a humongous liquidity advantage.

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#113

The thing about Uber I don’t understand is how they are going to defend their monopoly once they acquire it. Assuming they eventually win all the legal battles and drive all other taxi and taxi-like services out of business then how are they going to stop anyone else from entering their market? Each transport market is effectively isolated (you don’t hail a driver from SF to get around NYC). This means any new entran…

What do you consider "monopoly profits?" As of the 2013 leak, Uber was grossing $1bn in revenue [1]. Uber takes a 20% cut from each transaction, and has an extremely lean cost structure - drivers pay for gas, insurance, amortize vehicles, don't get any benefits, etc. Even if we assume costs to be 10% of revenue (which they aren't), Uber still would have earned a gross profit of $100m in 2013. Judging by Uber's curren…

But if they face a new entrant they can easily just lower prices and suffocate them.

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#114

Earlier quoted context omitted.

After you're inside and the door is closed. This is the only way you can get to the airport during the "shift change" that's right around PM rush hour. Nobody will take you there if you tell them you want to go there. That said the new Q70 bus from Jackson Heights (7/E/F/M/R) is quite efficient, and I don't bother with cabs anymore. Not worth paying someone $40 to bitch and moan about going to the airport when the MT…

"Jackson Heights (7/E/F/M/R)" Also ten minutes from Penn Station on the LIRR, whose Woodside station is next to the subway station (a bit more expensive than the subway, though).

Yeah. The Q70 starts at Woodside, actually.

I personally always take the LIRR to Jamaica when going to JFK. It's a bit nicer than taking the E (from Manhattan), and a bit faster than taking the A (from Brooklyn, get the LIRR at Atlantic Terminal) because the Jamaica AirTrain seems to run more frequently than the Howard Beach AirTrain. The LIRR also runs on an actual schedule, so you will end up at the airport when you expect, which always makes things less stressful.

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#115

There is a restaurant in Chicago called El Ideas http://www.eater.com/2015/4/27/8486425/phillip-foss-el-ideas... It's in a neighborhood that has no cabs and driving there not pleasant or convenient. Last night the chef told me if it wasn't for Uber, they probably wouldn't have survived

Why did they put their restaurant in a location that depends on a single, possibly illegal, transportation service to get their customers to them? Was that location easier to get to when they opened?

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#116
post #93

Earlier quoted context omitted.

As others have said, if the cab has the "on duty" light on, just get in. If, and the happens a lot late at night, the cab does not have the on duty light on you can negotiate. I've gotten steep discounts or even free rides for agreeing to do stuff like pick up the drivers wife off the clock on the way home. Like everything in New York, everything is negotiable.

But don't think you're safe there. If you have the slightest hesitation at all in your tonality, the driver will all of the sudden get a case of "I don't know that location, can you give me directions". I experienced that when I first moved here back to back one night because I didn't understand the "process" of getting a cab in New York. Point is, cabs are completely shady, and nearly all have horrible service. Sinc…

> "I don't know that location, can you give me directions"

On the other hand, sometimes I've been pleasantly surprised at how knowledgeable some cabbies are. I've gotten in a cab at LGA, told them my home address in Brooklyn, and they went there with no directions. I never tip less than 20%, but this efficiency earns a much larger than usual tip.

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#117
post #64

Earlier quoted context omitted.

[deleted]

Uber drivers can see where you are as part of evaluating your ride request. Consequently, though your ride request might be offered to several drivers before being accepted, you are not likely to be assigned a driver who cancels later because of your location. Furthermore, Uber drivers are not allowed to refuse more than a certain small percentage of rides, so drivers who do this more than rarely will be kicked out.…

I have had a case of an Uber driver not really wanting to drive me to Marina del Ray from downtown LA. He gave me a low review (this was back when there was the bug that let you see your rating).

The biggest problem I have with Uber is that some of the drivers are so pleasant and professional that I hate not being able to give them an extra tip. Maybe I should figure out how to do that.

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#118
post #105

Earlier quoted context omitted.

My god I hope this is not Uber’s plan. While this would actually work it is very, very illegal [1]. I can’t see the USA government turning a blind eye to such blatant antitrust activities, but after what they have let the banks get away with maybe it would work. 1. https://en.wikipedia.org/wiki/United_States_antitrust_law

"Pools" are multiple riders.

Yes I know what pools are. I was referring to the cutting prices in half to drive out competitors.

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#119
post #80

Earlier quoted context omitted.

I also don’t think it is very likely either, I was just assuming the best case scenario for Uber and I can’t see how they can make money in the long term even if they achieve this. Competition is great for consumers, but not so good for investors. Edit. Thanks for the updates to your post Ben. Given Uber’s cost of capital and current valuation how do you see Uber earning enough of a return with a differentiation busi…

I think you under-estimate the power of network effects and also the cost of entry to set up an on-demand transportation company. If it really was as easy and low cost as you assert I would suggest you would have seen many other players enter the market already by now.

> you would have seen many other players enter the market already by now.

Would we?

https://www.lyft.com/

http://www.sidecarsf.com/about

http://www.taxiapp.co.uk/

https://haxi.me/

http://www.summon.com/

Re: Uber has defeated Bill de Blasio’s plan to rein them in

#120

The thing about Uber I don’t understand is how they are going to defend their monopoly once they acquire it. Assuming they eventually win all the legal battles and drive all other taxi and taxi-like services out of business then how are they going to stop anyone else from entering their market? Each transport market is effectively isolated (you don’t hail a driver from SF to get around NYC). This means any new entran…

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